(1) In determining whether the consolidated group Solvency Capital Requirement appropriately reflects the risk profile of the group, the Bank, where it is the group supervisor, shall pay particular attention to any case where the circumstances referred to in Regulation 39(2)(a) to (d) may arise at group level, in particular where -
(a) a specific risk existing at group level would not be sufficiently covered by the standard formula or the internal model used, because it is difficult to quantify, or
(b) a capital add-on to the Solvency Capital Requirement of the related insurance undertakings or reinsurance undertakings is imposed by the supervisory authorities concerned, in accordance with Article 37 or 231(7) of the Directive.
(2) Where the risk profile of the group is not adequately reflected, the Bank may impose a capital add-on to the consolidated group Solvency Capital Requirement.
(3) For the purposes of paragraph (2), Regulation 39, together with any measures adopted in accordan
…